When is the inspection fee due to Burros Fries?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
| Audit Expenses | Cost of Audit Fees plus interest at 18% per annum (1.5% per month) up to the maximum interest rate allowed by law. | Ten days after receipt of audit report. | Payable to us only if you understate Gross Revenues by 2% or more. We expect the cost to be between $3,500- $6,500 unless your financial records are not well kept. |
|---|---|---|---|
| Costs and Attorney’s Fees | Will vary under circumstances. | As Incurred. | Payable as incurred by us in obtaining injunctive relief or the enforcement of any item of the Franchise Agreement. |
| Indemnification | Will vary under circumstances. | On Demand. | As Incurred; See Note 4. |
| POS Support | Currently $130-$140 per month for 1 cash register, software and ongoing support. | Monthly. | Payable to our approved vendors. See Note 5 |
| Laundry Service Fees | Currently $1,000-$1,500 per month for professional laundry services | Monthly. | Payable to our approved vendors. See Note 6 |
| Inspection Fee | $1,000 if you fail to pass an inspection for the second time. | On Demand. | Payable to us See Note 7 and Item 8. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the inspection fee of $1,000 is due 'On Demand.' This fee is charged if a Burros Fries franchisee fails to pass a store inspection for the second time.
This means that if Burros Fries conducts an inspection of a franchise location and it does not meet the required standards, the franchisee will be given an opportunity to correct the issues. However, if a subsequent inspection within a two-year period reveals that the deficiencies have not been adequately addressed, the franchisee will be assessed the $1,000 inspection fee.
The fee is payable directly to Burros Fries, as indicated in Item 6 and Note 7 of the FDD. It's important for prospective franchisees to understand the conditions under which this fee may be imposed and to maintain high standards of quality, product specifications, and cleanliness to avoid incurring this additional cost.